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Gangotri Textiles Ltd.

BSE: 521176 Sector: Industrials
NSE: GANGOTRI ISIN Code: INE670B01028
BSE LIVE 13:24 | 28 Nov 1.15 0.04
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NSE 15:32 | 09 Nov Stock Is Not Traded.
OPEN 1.16
PREVIOUS CLOSE 1.11
VOLUME 17000
52-Week high 1.27
52-Week low 0.76
P/E 5.48
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.15
Sell Qty 11194.00
OPEN 1.16
CLOSE 1.11
VOLUME 17000
52-Week high 1.27
52-Week low 0.76
P/E 5.48
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.15
Sell Qty 11194.00

Gangotri Textiles Ltd. (GANGOTRI) - Director Report

Company director report

TO SHAREHOLDERS

Ladies and Gentlemen

Your Directors present the 27th Annual Report of the Company along with the auditedstatement of accounts for the year ended 31st March 2016.

FINANCIAL RESULTS

(in Rs)
PARTICULARS 31.03.2016 31.03.2015
Sales Turnover 260326588 743546393
Profit/Loss before interest depreciation and tax 46313843 (76999024)
Less: Interest 128309507 293216755
Depreciation 16052766 229708262
Extraordinary Items 230919253 9788309
Net Profit/loss for the year before Tax (328967683) (431889112)

2. PERFORMANCE

During the year under review the Lenders have sold all the eight Units of the Companyexcept The Weaving & Processing Unit (Unit-8) at Perundurai and adusted the saleproceeds towards loan account. Consequently the entire operation of the company have beensuspended. All the employees except few have left the service of the company and thecompany has settled their dues fully. Since the only unsold unit has not been sold in thee-auction held on various dates the Lenders have decided to sell the said unit underPrivate Treaty edauction whichever happens earlier.

3. LEGAL:

1. M/s State Bank of India Stressed Asset Management Branch Coimbatore as the leaderof the consortium banks have filed Original Application in the Debt Recovery TribunalCoimbatore for the recovery of the outstanding dues of Rs. 3533813295/- as on 1-3-2013.This outstanding amount is exclusive of the dues to IDBI. The matter is sub-judice.

2. The company has filed Appeal in S.A.174/2013 before the Debt Recovery TribunalCoimbatore challengeing the Original Application filed by M/s. State Bank of India.

3. M/s. State Bank of India Stressed Asset Management Branch Coimbatore have filed aWrit Petition in W.P. No. 24864/2015 before the Hon'ble Madras High Court ChennaiChallenging the Customs Department is not having a first charge on the properties put toe- auction under the provisions of SARFAESI Act which overrides the Customs Act onpriority charge.

4. The Directorate of Revenue Intellegence Coimbatore have filed a MiscellaneousPetition in MP No. 24864/2015 praying to permit them to implead as 3rd Repondent in W.PNo. 24864/2016.

The above matters are pending before the Hon'ble Madras High Court Chennai.

4. DIVIDEND

In view of the loss incurred by the company during the year under review there was nopossibility for the payment of dividend for the financial year ended 31st March 2016.

5. FINANCE

The Bankers have initiated recovery proceedings under SARFAESI Act and sold all theAssets of the company except the Weaving & Processing Unit (Unit -8) at Perundurai andadjusted the sale proceeds against the loan outstanding as shown below. The said Unit-8was not sold in the e-auction held on various dates.

In the meantime The Director General of Foreign Trade Coimbatore has passed orders on20-1 -2016 levying penalty to the extent of Rs 559028760/- due to non-fulfilment ofExport Obligation in respect of 45 Licences issuded to the company. The company haspreferred an Appeal against this Order before the Deputy Director General of ForeignTrade New Delhi and the matter is sub-judice.

The Company has also received demand for Rs 15377000/- from the office of theAssistant Commissioner of Customs Chennai due to non-fulfilment of Export Obligation inrespect of 6 Licences issud to the company.

Since the entire Assets have been sold the company is having neither any machinery tofulllfil the Export Obligation nor have any source of funds to pay the liability.

Details of the Assets Sold

Assets Amount realised (Crores)
Wind Mills-5 Nos 35.23
Munduvelampatty Land 0.90
Kalappatty Land 1.82
Sullakkal Land 2.38
Gokulam Land 4.42
Vehicles 0.15
Unit-1 16.30
Unit 2 & 5 11.20
Unit -3 6.55
Unit 4 & 9 32.65
Unit- 6 2.02
Unit- 7 8.50
Retention Money 14.88
Unit- 8 Machineries 15.05
Unit- 8 since sold on 20.7.2016 39.00
Total 191.05

6. DEP0SITS

The company is not accepting Fixed Deposits. The relevant provisions of Section 73 ofthe Companies Act2013 in this regard to deposits wherever applicable have been dulycomplied with.

7. C0RP0RATE GOVERNANCE

A separate Report on the Corporate Governance is enclosed as part of this AnnualReport. The Auditors of the Company have also given their certificate relating tocompliance of Corporate Governance and this report is annexed to the report of CorporateGovernance as is required by the Listing Agreement.

8. LISTINGS

The company's shares are listed in 1) National Stock Exchange of India Ltd 2) MumbaiStock Exchange Ltd and 3) Calctta Stock Exchange Limited. Since there was no source offinance to the Company the company has paid listing fee to these Stock Exchanges.

9. Extracts of the Annual Return.

As per the requirements of provisions of the Companies Act 2013 the extract of theAnnual Return in the prescribed Form MGT-9 is annexed hereto as Annexure 1 framing part ofthis report.

10. Number of Meetings of the Board.

Details of number of meetings of Board of Directors and Committees thereof and theattendance of the Directors in such meetings are provided in the Corporate GovernanceReport attached elsewhere in the Annual Report.

11. Directors' Responsibility Statement.

In terms of the requirement of Section 134 (3) (c) of the Companies Act 2013 theDirectors hereby confirm:

1) that in the preparation of Annual Accounts the applicable Accounting Standards havebeen followed along with proper explanations relating to material departures

2) that the Directors have selected such accounting policies and applied themconsistently and made judgements and estimates that are reasonable and prudent so as togive a true and fair view of the state of affairs of the Company at the end of theaccounting year namely March 312015 and of the profit /loss of the Company for thatperiod.

3) that the Directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provision of the Act for safeguardingthe assets of the Company and for preventing and detecting fraud and other irregularities;

4) that the Directors have prepared the Annual Accounts on a going concern basis.

5) the Directors have laid down internal financial controls to be followed by thecompany and such internal financial controls are adequate

6 the Directors have devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and are operating effectively.

12. Nomination and Remuneration Committee and Policy.

As per the requirements of the provisions of the Companies Act 2013 a Nomination& Remuneration Committee was formed by the Board of Directors consisting of

1 .Sri. N. Venkatesan Chairman (Non-Executive-Independent)
2.Smt. M.V.Suryaprabha Member (Non-Executive-Independent)
3.Sri. R.P.Joshua Member (Non-Executive-Independent)

The said committee has been empowered and authorized to exercise the power as entrustedunderthe provisions of Section 178 of the Companies Act 2013. The Company has a policy onDirectors' appointment and remuneration including criteria for determining qualificationpositive attributes independence of a Director and other matters provided undersub-section (3) of Section 178 of the Companies Act 2013. The Nomination and Remunerationpolicy is annexed herewith as Annexure 2.

7. Declaration by Independent Directors

The Independent Directors have submitted their disclosures to the Board that theyfulfill all the requirements as stipulated in Section 149 (6) of the Companies Act 2013so as to qualify themselves to be appointed/continued as Independent Directors undertheprovisions of the Companies Act 2013 and the relevant Rules thereunder.

8. Explanation & Comments

The reports of Statutory Auditors appearing elsewhere in the Annual Report and that ofthe Secretarial Auditors (annexed hereto as Annexure 3) are self-explanatory having noadverse comments.

9. Particulars of Loans/Guarantee/Investments

Details as per the provisions of Section 186 of the Companies Act 2013 is given underNotes to Financial Statements.

10. Particulars of Contracts with Related Party

All the transactions of the company with related parties are at arm's length and havetaken place in the ordinary course of business. Provisions of Section 188 of the CompaniesAct 2013 is not applicable.

11. Material Changes

There is no material changes or commitments after closure of the financial year tillthe date of this report.

12. Statutory Auditors

During the year under review the Statutory Auditors of the Company M/s. Thakker &Sanghani Chartered Accountants resigned as such Statutory Auditor on 24.10.2015. To fillthe casual vacancy arised out of the resignation M/s M.Gangadharan & Co CharteredAccountants have been appointed as Statutory Auditors of the Company to conduct audit forthe financial year 2015-16. Their appointment was recommended by the Audit Committee andaccepted by the Board of Directors in their meeting held on 13.11.2015 and subsequentlyapproved by the Shareholders in the Extra-ordinary General Meeting held on 30-12-2015.They have given necessary certificate in terms of Section 224 (1) (b) of the CompaniesAct 1956.

13. Audit Committee

In pursuance of the applicable provisions of Section 177 of the Companies Act 2013 acommittee of Directors consisting of three Directors has been constituted as AuditCommittee. The Directors who are the members of this committee are:

1) Sri. N. Venkatesan - Independent Director
2) Sri. R.P. Joshua - Nominee Director
3) Smt. Suryaprabha - Independent Director

The Company Secretary shall act as the Secretary of the Audit Committee as well.

The Board has accepted the recommendations of the committee and there were noincidences of deviation from such recommendations during the financial year under review.

The company has devised a Vigil Mechanism in the form of a Whistle : Blower Policyinpursuance of the provisions of Section 177 (10) of the Companies Act 2013 . During theyear under review there were no complaints received under this mechanism.

14. Stakeholders Relationship Committee

In pursuance of the applicable provisions of Section 178 (5) of the Companies Act 2013a committee of Directors consisting of three Directors has been constituted asStakeholders Relationship Committee. The Directors who are the members of this committeeare

1) Sri. N.Venkatesan - Independent Director
2) Sri. Manoj Kumar Tibrewal - Managing Director
3) Sri. Mohanlal Tibrewal -Executive Director

15. Corporate Social Responsibility Committee

In terms of the provisions of Section 135 of the Companies Act 2013 a CorporateSocial Responsibility Committee is to be constituted for the purpose of implementing theCorporate Social Responsibility. As on date the Company does not come under the categoryof Companies who have to implement this scheme.

16. Disclosure under the Sexual Harassment of Woman at Workplace (PreventionProhibition and Redressal) Act 2013

Since all the units of the company were sold during the under review the question ofdisclosure of Sexual Harassment of Woman at Work Place does not arise.

17. Industrial Relations

Does not arise.

18. Energy Consumption

Does not arise.

19. Technology Absorption

Does not arise.

20. Foreign Exchanhe Earnings and Outgo.

Total Foreign Exchange earned is Rs. 3902971 during the year under review.

21. Evaluation of Board's Performance

On the advise of the Board of Directors the Nomination and Remuneration Committee thecompany have formulated the criteria for the evaluation of the performance of Board ofDirectors Independent Directors Non- Independent Directos and the Chairman of theBoard. Based on that performance evaluation has been undertaken. The IndependentDirectors have also convened a separate meeting for this purpose. All the results and theevaluation has been communicated to the Chairman of the Board of Directors. All theDirectors of the Board are familiar with the business of the company.

22. General

There are no employees falling under Section 217 (2A) of the Companies Act 1956. Theinformation pursuant to the Company (disclosure to particulars in the report of Board ofDirectors) Rules 1988 to the extent applicable is attached.

23. Matters as may be prescribed

As per Rule 8(5) of the Companies (Accounts) Rule 2014 the following additionalinformation are provided.

1 The financial summary or highlights The financial highlights is provided in this report.
2 The change in the nature of business if any Since all the manufacturing Units have been sold out only trading business is possible.
3 The details of Directors or Key Managerial Personnel who were appointed or have resigned during the year. There is no change in the Key Managerial Personnel.
4 The names of companies which have become or ceased to be subsidiaries joint ventures or associate companies during the year. None
5 The details relating to deposits covered under Chapter V of the Act. The Company has not accepted deposits.
5 The details of deposits which are not in compliance with the requirements of Chapter V of fhe Act. Not Applicable.
7 The details of significant and material orders passed by the Regulators or Court or Tribunals impacting the going concern status and company's operation in future The details of the Demand received from the Joint Director General of Foreign Trade and the Customs Authority are stated elsewhere in this Report.
g The details in respect of adequacy of Internal Control with reference to financial statements. Procedures are set out so as to detect and prevent frauds. The financial statements are prepared in accordance with the Accounting Standards issued by ICAI.

22. Acknowledgement.

Your Directors express their heartfelt thanks for the employees at all levels who havestood by the Company in these testing times.

By Order of the Board
For GANGOTRI TEXTILES LIMITED
MANOJ KUMAR TIBREWAL
MANAGING DIRECTOR
Place: Coimbatore
Date: 30.5.2016 MOHANLAL TIBREWAL
EXECUTIVE DIRECTOR